Fixed income
We are back testing good support levels on US Yields
US 2-year yield: Good support here at 4.42-4.40%. What are extended levels to look for IF 4.40% gives way?
4.34% is the 76.4% pullback of the 4.12-5.04% move . Below here would open up for a test of pivotal support at 4.12-4.13% (taking us dangerously close to "alarm Bell ringing" 140 bp's inversion to the Fed Funds rate.
A move below here and support at 3.55% comes into play again.
US 5-year yield: Trend line support is met at 4.07-4.09% and then horizontal support at 3.99%. Below there lies pivotal support at 3.75%
US 10-year yield: Strong support is met at 4.16-4.18% and then horizontal support at 4.03%. Below there lies pivotal support at 3.78%
German yields also look susceptible across the board but have not, as yet broken important levels. The exception is ERZ5 which has broken the 200-day MA and completed a clear inverted head and shoulders with the break of 97.41 that suggests a move towards 97.80 again.
We have similar inverted head and shoulders patterns right across the board from ERH5 onwards.
Commodities
CL1 looks very susceptible with it moving down to test a head and shoulders neckline ($81.06) and a 76.4% pivot ($80.81). A break below this range would open up the way for a potential move towards $77
Gold Now approaching the trend high at $2,450 IF that gives way we should be anticipating a quick move towards $2,620-$2640
